Virginia Symphony Seeking $1 Million Loan

The Virginia Symphony is seeking a $1 million loan from Norfolk's Economic Development Authority to offset its revenue shortfall, Executive Director Carla Johnson said Thursday.

The regional orchestra is currently $500,000 in debt and is carrying a $1 million deficit from the previous season because of a decline in ticket sales and donations brought about by the economic recession. If a loan cannot be secured and the financial picture does not improve, the orchestra is considering filing for Chapter 11 bankruptcy, she said.

"I've talk to colleagues in the industry, and various cities have provided various ways to help their orchestras," she said. "And yes, we absolutely will approach other cities."

Orchestra management plans to meet with members of the Norfolk authority on Dec. 17. On Wednesday, Norfolk Mayor Paul Fraim said his recommendation would be for the orchestra to receive as much as $500,000 that would be paid back with interest. Several years ago, the authority also lent the Virginia Stage Company $250,000, which was paid back, he said.

Earlier this week, Johnson announced that the orchestra's 27 staff members would take a 20 percent pay cut beginning in January and would cancel some spring concerts to trim costs. The cuts do not affect the musicians, which are covered by a collective bargaining agreement, though their paychecks could be in jeopardy if the loan does not come through. Johnson said she was encouraged that more donations have been coming in recently. Other arts organizations in Hampton Roads and across the country have been suffering because of the economy. On Wednesday, the Virginia Beach City Council approved a $200,000 loan to Virginia Musical Theatre.